The top Democrat on the House Intelligence Committee, Congressman Jim Himes, has issued a warning regarding the potential risks of a US debt default. According to Himes, the chaos that could ensue could allow China and Russia to take advantage of the situation, while also warning that the US dollar’s reserve currency status could be eroded. Mr. Himes stated that US Congress has never come so close to defaulting on its obligations as it currently is.
The consequences of a US default would be vast and could have chaotic consequences that would extend far beyond the US borders. Mr. Himes warned that the US dollar’s status as a reserve currency could be at risk and that China and Russia could exploit the chaos. In addition to these potential threats, the US could also suffer credit rating downgrades and rising borrowing costs, leading to further economic hardships.
The potential implications of a US default should serve as a stark reminder of the importance of maintaining a sound financial system and avoiding a debt default at all costs. The consequences of such an event would be far reaching and could have lasting repercussions on the US economy and beyond.
